Question

Pina, Inc. buys 1,400 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $10,300. Pina will group the CDs into three price categories for resale, as indicated below.

Pina, Inc. buys 1,400 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $10,300. Pina will group the CDs into three price categories for resale, as indicated below. Group No. of CDs Price per CD 1 300 $8 2 900 15 3 200 23 Determine the cost per CD for each group, using the relative sales value method. (Do not round ratios for computational purposes. Round final answers to 2 decimal places, e.g. 5.85.) Group Cost per CD 1 $ 2 $ 3 $

Determine the cost per CD for each group, using the relative sales value method.

Answer 1

Cost per CD for each group using Relative sale value method :- Group No of CD's (A) Sale Price per CD (B) Total Sales Price (A*B) Relative Sales Price (D) (E) 300 900 8 15 23 Cost Total Cost Allocated to Cost per CD CD's (F/A) (D'E)=F 10,300 1,206 4.02 10,300 6,783 7.54 10,300 2,311 11.56 10,300 2,400 2400/20500 13,500 13500/20500 4,600 4600/20500 200 20,500